1. Field of the Invention
The present invention relates generally to the financial service and banking industries, and, more particularly, to systems and computer program products for securing foreign currency funds for travel abroad, and related methods.
2. Description of Related Art
As far back as the time of the Roman Empire and prior, people have traveled from their home village or country to distant villages or countries. One problem faced by such travelers, was the transportation of items of value, such as gold, silver, goods for barter, or currency, in order to procure sustenance, living quarters, and/or souvenirs. Carrying gold, silver, or items applicable for trade, for example, would add a weight burden and would attract thieves. Further, in countries having minted currency, usually made with the blacksmiths hammer, acceptance of such currency, if differing from the currency in the destination country, presented potential acceptance issues, particularly if the currency did not have the same face value as the base material.
The modern world presents a similar set of issues. Attraction of thieves to hard currency is still a significant issue. Further, although much more convenient to carry than in the olden days, transportation of currency, especially, for example, in a beach environment, or when one is exercising, remains a significant issue. Additionally, unlike currency in the form of precious metal based coins or pieces of gold, silver, etc., which tended to have a fairly stable value, in the modern world, currency in the destination country can have severe value fluctuations with respect to domestic currency, resulting in highly variable foreign exchange rates and large variations in purchasing power.
Numerous factors can influence the foreign exchange rates. Such factors, for example, can include economic strength of both the commencement and the destination countries, their political stability, national and transnational policies and relationships, and/or demand for the respective currency, and, of course, the size of the foreign exchange transaction. Due to such high variability and numerous factors influencing foreign exchange rates, it is extremely difficult for the would-be traveler to predict future exchange rates, even for a short period. Travel plans, however, are frequently made many months, and sometimes even years, in advance. As such, recognized by the inventor is that there can be some significant foreign exchange rate risk associated with travel arrangements planned significantly in advance, which can result in what would appear to be affordable travel arrangements becoming unaffordable at the time the travel arrangements are to be commenced due to variations in the foreign exchange rate, which are difficult, if not impossible, to predict by the would be traveler.
Further, also as a result of the destination country's political stability and the country's national policies, for example, once exchanged, the destination currency can face significant valuation fluctuations with respect to goods and services sold within the borders of the destination country. Where the price of an apple, today, can equal one unit of destination currency, the price of the same apple three months later may equal three units of the same destination currency. As such, recognized by the inventor is that there can be some significant internal valuation issues within the country by holding hard currency that may tend to prevent a traveler having advance travel arrangements from desiring to conduct a foreign exchange transaction at a time that is significantly before the time that the hard currency would be needed. Notably, such countries having a high inflation rate also typically have banks which have interest-bearing accounts that pay rates that are much higher than that of interest-bearing accounts in banks located in countries having a lower inflation rate. Thus, also recognized by the inventor is that part of the difficulties resulting from inflation of the destination currency can be offset if funds are deposited in an account which pays interest which better reflects the inflation rate of the destination currency.
As noted above, attraction of thieves to hard currency is still a significant issue. Typical methodologies used to counteract such issue can include the use of traveler's checks and/or use of credit cards. Debit cards, although not necessarily a method of choice for international travelers, are quickly becoming a methodology that is used, at least internally by local nationals of the most popular destination countries. Credit and debit cards, however, still have some value to a thief, but can be readily canceled once the traveler discovers the theft. Further, credit and debit cards have suffered some fee related issues. Additionally, for any purchases or withdrawals using a standard issue debit card, the traveler has typically been at the mercy of the local exchange rate at the time of the transaction, which, as noted above, can be very hard, especially for the traveler, to predict at the time the traveler “books” his or her travel arrangements. Additionally, debit cards (debit card networks) have suffered severe cross-border compatibly issues. Nevertheless, separately within some individual countries, use of debit cards by locals has become so wide-spread that use of debit cards, in such countries, is to the point of overtaking the use of checks and sometimes even cash, at least by volume.
Recognized by the inventor, therefore, is the need for systems, program product, and methods for securing or procuring destination currency funds for a traveler to be used for travel in a destination country commencing at a scheduled future travel date, which does not subject to the traveler to an excessive currency exchange rate risk, and which helps minimize the effects of inflation within the destination country.